German Companies in China. Jian-Ping Qin

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       Dr.-Ing. Jian-Ping QIN

       German Companiesin China

       20 Years Business Experience of aGeneral Manager

      Copyright: © 2020 Dr.-Ing. Jian Ping QIN

      Proofreading:

      Cover & Typesetting:

      Cover picture: Erik Kinting

      Publishing house and printing:

      tredition GmbH

      Halenreie 40-44

      22359 Hamburg

      ISBN 978-3-347-11187-5 (Paperback)

      ISBN 978-3-347-11188-2 (Hardcover)

      ISBN 978-3-347-11189-9 (e-Book)

      The work including its parts is protected by copyright. Any use without the consent of the author is prohibited. This applies in particular to electronic or other reproduction, translation, distribution and public access.

      Bibliographic information from the German National Library:

      The German National Library lists this publication in the German National Bibliography; detailed bibliographical data are available on the Internet at http://dnb.d-nb.de.

       content

       Foreword

       Existence environment analysis of German and Chinese business models

      1. Social system

      2. Economic system and market characteristics

      3. Culture and customs

      4. Company management

      Conclusion

       The development of German companies in China

       Process management of German companies

       Process of company annual planning

       Sales process

       Technical service

       Production process

       Logistics process

       Product management process

       Research and development Process

       Purchasing process

       Quality management process

       Financial management process

      1. Calculation of turn over

      2. The Chinese Fapiao system

      3. The unique tax management in China

      4. Receivables management

      5. Two accounts

      6. Patent and Brand fees

       Human resource process

      General analysis of Made in China and Made in Germany

      Features Made in Germany

      Features Made in China.

       Foreword

      The United States, Germany, Japan, and China can be considered as super-producing countries. Although the United States, a former manufacturing power, has maintained its leading position in high technology, it has abandoned it in the traditional industrial sector.

      There is a saying in industry: the Americans patent the invention, the Germans make it a product, the Japanese miniaturize it and the Chinese make it cheap. Although this is somewhat exaggerated, this saying basically clarifies the characteristics of these countries: the USA is a leader in high technology, Germany is good in product development, Japan is good in product optimization, and China has the costs through mass production considerably reduced.

      This book focuses on Made in Germany and Made in China.

      Germany is known worldwide for its quality and reliability and has almost no competitors in Europe. The introduction of the euro makes it impossible for the European countries to protect their products from the Germany by devaluing their currencies; With the help of the euro, German products broke through the borders and occupied Europe. The world-famous German industrial standard DIN has become the European standard EN.

      With regard to modern industry, we have to recognize that Germany is a teacher for China, the German quality has historical dimensions worldwide. For example, the author knew from childhood that the German company Zeiss was producing the best cameras in the world at that time. The Chinese have had respect for Made in Germany since World War II. There are often various articles in the Chinese media in which Germany and German products are presented. The reports are full of praise and recognition, the German model is almost idolized in China. German products are always a model for copies of Chinese products and German company management is always a role model for Chinese company management. Although Made in China has currently dominated the mid-end and low-end markets around the world, Made in China lags behind Made in Germany in the high-end market. The rise of the Chinese model did not mean the decline of the German model. This book does not intend to replace the German model with the Chinese one, but rather to discuss the rationality of these two models in their own existence.

       Existence environment analysis of the German and Chinese business models

      First of all, it must be emphasized that each of the two models has its own social, economic and cultural environment. The German philosopher Hegel said: what is reasonable is real; and what is real is reasonable.

      The success of a model is inextricably linked to its respective existence environment. A model that is successful in one place may not possibly be, or may not be entirely suitable for another place if the living environment is different. In other words, we must first carry out an objective comparison of the existence environments of German and Chinese companies. By comparing the differences in social system, economic system, market characteristics, culture and company management between China and Germany, we can better understand the differences between the two business models in their respective livelihoods.

      1. Social system

      Germany is a constitutional state. The laws apply to everyone and must be followed. Almost all German companies make their own general Terms and conditions for the basis of the contract, whereby all legal points are precisely defined. The functions, area of application and instructions for use of a product as well as the quality guarantee etc. are clearly defined in Germany and laid down by law. Responsibility for problems is also fully under legal supervision. Clear legal requirements and legal responsibilities in turn lead to extremely high demands on product quality. This is the legal basis for the high quality of German products.

      China is a developing country and the legal system needs to be improved. The legal definitions of product quality, responsibilities and obligations have not yet been clearly defined. There is no effective legal assessment method for product quality problems, so there is insufficient legal basis for quality requirements in China. Once a problem arises, it's more about how the problem can be solved quickly rather than clarifying responsibility. This in turn is due to the human factor in China, everything is regulated through personal relationships - vitamin B, as they say in Germany. In the event of a dispute in Germany, legal action is usually taken directly and the legal process usually closes the problem. For example, processing claims in Germany is comparatively easy. The judicial dunning procedure can be operated by everyone at low cost, in addition, from collection agencies to lawyers,